Study On Influnencing Factors And Countermeasures Of Non-performing Loan In Commercial Banks

Not only is non-performing loan one of the most important causes to the financial crisis, but also the reflection of the individual bank'profit ability and competence. In the past years, the state-owned commercial banks have accumulated a great of number of non-performing loan, endangering the stability of banking system. And ratio of non-performing loan in china commercial banks is higher than foreign bank. Therefore, it is meaningful in the theory and practice to do some work on the influencing factors and feasible solution to non-performing loan. This paper starts from non-performing loan'inherence; reviews the researches on its influencing factors; puts forward the ideal that state-owned commercial bank is commercial bank firstly, then state-owned commercial bank; and tries to find the influencing factors and feasible solution from two aspects-business cycle, behavior of bank itself. This paper classifies the impacts of incentives mechanism on non-performing loan by setting up utility function of commercial bank and bank manager and the impacts of supervision in bank itself on Non-performing loan by setting up supervision model of commercial bank and bank manager. The result shows that the measurement index including ratio of non-performing loan can resolve the Principal-agent problem in some extents, but cannot replace the effect of supervision in bank itself. Also, this research on the influencing factors is conducted in multivariate regression model, while the ratio of non-performing loan is referred as dependent variable. The charge ratio,capital adequacy ratio and relative size have positive correlation coefficient with ratio of non-performing loan, while the business cycle has negative correlation coefficient. Based on the above results, this paper put forward the way to resolve non-performing loan from -stocks and flows.